The London Stock Exchange welcomed the listing of the first-ever international Bangladesh Taka-denominated “Bangla” bonds to its main market.
Issued from IFC, one of the members of the World Bank Group, this sets up the opening of the global Bangla bond market, essential to support financing of Bangladesh companies while raising the international profile of the Bangladeshi Taka.
The Finance Minister of Bangladesh, AHM Mustafa Kamal commented that the “the issuance of ‘Bangla Taka Bond‘ is the beginning of a long journey to our destination.”.
Lead arrangers on the bond were Standard Chartered Bank and Bank of America Merrill Lynch. Taka bonds will continue to be issued for funding local currency by the IFC in Bangladesh.
The IFC raised 800 million Bangladeshi Taka (approximately GBP £7.4 million equivalent) of three-year bonds, securing international investor support.
The proceeds will go on to provide funding for the PRAN Group, which is Bangladesh’s leading food and beverage manufacturer. As well as this, the PRAN group is also Bangladesh’s largest private-sector employer, with the funding being spent predominantly on expansion of existing capacities, as well as continuing to develop rural distribution reach.
The vice president and treasurer of the IFC, Nena Stoiljkovic had the following to say:
“The first-ever Bangla bond issued by triple-A-rated IFC and listed on the London Stock Exchange will help provide Taka-denominated solutions for PRAN Group to broaden its operations and boost local jobs. We look forward to remaining an active partner in Bangladesh’s journey to attain greater prosperity.”
This positive statement was followed by the IFC vice president and treasurer John Gandolfo saying:
“The issuance of the inaugural Bangla bond is an important capital markets innovation. IFC is committed to expanding local currency financing in emerging markets and we plan to continue issuing Taka bonds to fund local currency transactions in Bangladesh.”
By setting up the opening of the global Bangla bond market, this move is set to support financing for Bangladesh companies, whilst continuing to raise the international profile of Bangladeshi Taka.